NEWTON, Iowa, Nov. 10 /PRNewswire-FirstCall/ -- Maytag Corporation
(NYSE: MYG) announced today it has entered into a new $600 million, five-year,
senior-secured revolving credit agreement. The new credit facility replaces
the existing $300 million revolving credit agreement.
(Logo: http://www.newscom.com/cgi-bin/prnh/20000505/MYGLOGO )
"This agreement is a positive development for Maytag," said George Moore,
executive vice president and CFO. "The new credit agreement should provide us
with substantially more financial flexibility, including capacity to meet all
2006 debt maturities, as well as the ability to operate and restructure our
business."
Borrowings under the agreement, which was not drawn down at closing other
than to support outstanding letters of credit, are secured by accounts
receivable and inventory of Maytag and certain Maytag subsidiaries. Under the
terms of the agreement, Maytag also has the ability to increase the new
facility by $150 million to $750 million. The new credit facility was
co-arranged by J.P. Morgan Securities, Inc. and Citigroup Global Markets, Inc.
Maytag Corporation is a $4.8 billion home and commercial appliance company
focused in North America and in targeted international markets. The
corporation's primary brands are Maytag(R), Hoover(R), Jenn-Air(R), Amana(R),
Dixie-Narco(R) and Jade(R).
Maytag Additional Information
This document includes statements that do not directly or exclusively
relate to historical facts. Such statements are "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These forward-looking statements
speak only as of this date and include statements regarding anticipated future
financial operating performance and results. These statements are based on
the current expectations of management of Maytag. There are a number of risks
and uncertainties that could cause actual results to differ materially from
the forward-looking statements included in this document. For example, with
respect to the transaction with Whirlpool (1) Maytag may be unable to obtain
shareholder approval required for the transaction; (2) conditions to the
closing of the transaction may not be satisfied or the merger agreement may be
terminated prior to closing; (3) Maytag may be unable to obtain the regulatory
approvals required to close the transaction, or required regulatory approvals
may delay the transaction or result in the imposition of conditions that could
have a material adverse effect on Maytag or cause the parties to abandon the
transaction; (4) Maytag may be unable to achieve cost-cutting goals or it may
take longer than expected to achieve those goals; (5) the transaction may
involve unexpected costs or unexpected liabilities; (6) the credit ratings of
Maytag or its subsidiaries may be different from what the parties expect; (7)
the businesses of Maytag may suffer as a result of uncertainty surrounding the
transaction; (8) the industry may be subject to future regulatory or
legislative actions that could adversely affect Maytag; and (9) Maytag may be
adversely affected by other economic, business, and/or competitive factors.
Additional factors that may affect the future results of Maytag are set forth
in its filings with the Securities and Exchange Commission ("SEC"), which are
available at http://www.maytagcorp.com . Maytag undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.
Additional Information Relating to the Proposed Merger and Where to Find
It
Whirlpool and Maytag have filed a preliminary prospectus/proxy statement
with the SEC in connection with the proposed transaction. Investors are urged
to read the preliminary prospectus/proxy statement, and any other relevant
documents filed or to be filed by Whirlpool or Maytag, including the
definitive prospectus/proxy statement when available, because they contain or
will contain important information. The preliminary prospectus/proxy
statement is, and other documents filed by Whirlpool and Maytag with the SEC
are, available free of charge at the SEC's website ( http://www.sec.gov ) or
from Whirlpool by directing a request to Whirlpool Corporation, 2000 North
M-63, Mail Drop 2800, Benton Harbor, MI 49022-2692, Attention: Larry
Venturelli, Vice President, Investor Relations. Neither this communication
nor the preliminary prospectus/proxy statement constitutes an offer to sell or
the solicitation of an offer to buy Whirlpool common stock in any jurisdiction
outside the United States where such offer or issuance would be prohibited --
such an offer or issuance will only be made in accordance with the applicable
laws of such jurisdiction.
Whirlpool, Maytag and their respective directors, executive officers, and
other employees may be deemed to be participating in the solicitation of
proxies from Maytag stockholders in connection with the approval of the
proposed transaction. Information about Whirlpool's directors and executive
officers is available in Whirlpool's proxy statement, dated March 18, 2005,
for its 2005 annual meeting of stockholders. Information about Maytag's
directors and executive officers is available in Maytag's proxy statement,
dated April 4, 2005, for its 2005 annual meeting of stockholders. Additional
information about the interests of potential participants is included in the
preliminary prospectus/proxy statement Whirlpool and Maytag filed with the
SEC.
Media Contact: John Daggett
Maytag Corporate Communications
(641) 787-7711
john.daggett@maytag.com
SOURCE Maytag Corporation
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Related links:
http://www.maytagcorp.com
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PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
John Daggett of Maytag Corporate
Communications, +1-641-787-7711, john.daggett@maytag.com
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